For those of you with still-fresh memories of this past Labor Day weekend out at the family cottage, now may be the time to take action to ensure that future Labor Days and summer outings will continue to be enjoyed by your family long after you are gone. In other words, ensure the future of the family cottage and the peace and domestic tranquility of your family through proper estate planning. So, how do you do that? The Wall Street Journal Online recently touched on the topic. The best way to leave an inheritance that includes a family vacation home…
It's a delicate balance, but parents who employ innovative financial training, carefully chosen trustees and cleverly written trusts can find there's hope for their high-rolling offspring. Estate planning is about taking care of your family and loved ones. But what if you have concerns about how your loved ones will use those assets? You spent a lifetime earning what you have through hard work and thrift. So why pass it along only to be squandered? Would you hand over the car keys to a teen who hasn’t proven he or she can drive? As any automobile insurance agent can attest,…
Unfortunately, estate planning opportunities tend to be hard to time. Practically speaking, you tend to not be “done” with your estate when the law creates a planning window. Certainly, that was the joke in 2010 when the estate tax lapsed and it become “the year to die.” [Just ask the family of George Steinbrenner!] As I and many others have noted previously, both 2011 and 2012 are incredibly favorable years for gifting. While the law (and other factors) have made these scant two years such a great window, that doesn’t mean you’re done with those assets of your estate you…
Sometimes when people get into financial trouble, they look for an easy way out. Whether out of sheer desperation or an attempt at trickery, some resort to making what the law considers a fraudulent transfer. Fraudulent transfers have a tendency of coming back to bite you and several recent cases serve to demonstrate that fact, as in one of Lewis Saret’s recent posts on Forbes (and the much longer list in the Wealth Strategies Journal.) One case is that of re Quaid, (2011 WL 285645, Bkrtcy.M.D.Fla., Jan. 26, 2011,) where a Florida man sought to use a self-settled trust to…
There is an old saying, quite true, that wealth is difficult to amass but easy to squander … especially by those who did not earn it. Many parents – and grandparents – come to us asking how they can leave an inheritance to their loved ones, without “spoiling” them. They want the fruit of their labors – the wealth they pass on – to inspire their loved ones to greater causes, and not cause that dread disease known as “affluenza.” Incentive trusts offer an opportunity to try and nudge younger generations to solid values, but as explained in a recent…
The economy is starting to show some life in a number of sectors but, unfortunately for many, the housing market is not one of them. The good news for the crafty estate planner is that the poor housing market coupled with the tax laws that went into effect with last December’s compromise offer a rather unique opportunity, one that may very well rate amongst the smartest estate planning moves one will ever make, according to Forbes columnist Rob Clarfeld. Now might be time to give away the house. The poor housing market remains perhaps the largest unhealed wound of the…
Do you own a vacation home in Mexico? Have a bank account in Hong Kong? Has your spouse retained Canadian citizenship? Are you a long-term U.S. resident who was born in the U.K.? Is your brother-in-law, who is a citizen and resident of Ireland, the successor trustee of your revocable trust? Each of these scenarios raises complex tax issues that, without proper planning, could easily have disastrous and costly consequences. The fact is that we live in a globalized world: technology and commerce allow us to move about as we please, even across several continents. But remember that technology…
You may need to review and/or revise your estate planning documents every three years or more frequently depending on your situation, or you may simply feel more comfortable reviewing it regularly. Ultimately, it’s up to you, but the more you review the less likely that your heirs hire an estate litigation lawyer. Reason 1: Your Will / Trust Never Goes Out Of Date With a regular review, you may decide to change things that may not be accurate anymore, or you simply desire to change things. For example, you may wish to remove one of your children from the will,…
It certainly is understandable that no one enjoys a conversation about death – especially their own! And, with the estate tax exemption now set at $5 million for an individual and $10 million for a couple, many people may believe they have no reason to consult an attorney about their estate planning. But avoiding the topic of estate planning can mean unnecessary expense, confusion and conflict. SmartBusiness last week highlighted the fundamentals of a “well-thought-out estate plan,” with topics that everyone should consider – whether prince or pauper. Why do you need an estate plan? A comprehensive estate plan ensures…
A reader wrote recently to the business columnist at NWI with a common question: “My will says that my son’s share is held in trust until he is 25. What if he is married by 23 and has a baby? Does he still have to wait until he is 25 to get the money?” The reply was somewhat simplistic, I thought, explaining that perhaps it would be good to give the trustee wide discretion to distribute funds out of and terminate a trust established for your children. Certainly, a testamentary trust of this sort that distributes funds outright to the…
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